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Morning News Call - India, July 22

·5 min read

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_07222021.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH • 3:30 pm: CEAT management at earnings call post first-quarter earnings. • 4:00 pm: Hindustan Zinc management at a conference call on first-quarter earnings. • 4:00 pm: UltraTech Cement management at a conference call on first-quarter earnings. • 4:30 pm: Bajaj Auto management at analyst call on first-quarter earnings. • 7:15 pm: ICICI Lombard General Insurance Company management at a conference call on first-quarter earnings. INDIA TOP NEWS • Infosys reopens offices as India Inc eyes long road back to work Indian outsourcing giant Infosys told employees last week they could resume work from offices, according to a memo seen by Reuters that offers an early sign of the country's $190 billion technology services sector moving to get back on track. • Food delivery startup Swiggy raises $1.25 bln from SoftBank, Prosus Indian food delivery startup Swiggy said on Tuesday it has raised $1.25 billion in a funding round led by SoftBank's Vision Fund 2 and technology investor Prosus as foreign funds raise their stake in local internet-based consumer firms. • Zomato raises $1.26 bln in IPO - sources Indian food delivery startup Zomato will raise $1.26 billion by pricing its shares at 76 rupees each in its initial public offering, according to two sources with direct knowledge of the matter. • India reports 3,998 COVID deaths after state corrects its data India reported its highest death toll in a month on Wednesday - at nearly 4,000 - after its richest state reconciled its death count with 3,509 previously unreported fatalities, the health ministry said. • Indian opposition disrupts parliament, seeks probe into Pegasus Indian opposition parties disrupted parliament on Tuesday, demanding an investigation into reports that the government used Israeli-made Pegasus spyware to snoop on scores of journalists, activists and politicians, including the main opposition leader Rahul Gandhi. • Two-thirds of Indians have coronavirus antibodies, survey shows Two-thirds of India's population have antibodies against the coronavirus, according to data released on Tuesday from a survey of 29,000 people across the nation conducted in June and July. • Chile copper giant Codelco plans India, SE Asia push to trim reliance on China Chile state mining company Codelco, the world's largest copper producer, will seek to quadruple sales in Southeast Asia by 2023 and push further into the Indian market in an attempt to reduce a strong reliance on sales to China, the company told Reuters. GLOBAL TOP NEWS • ECB set to promise even longer support to charge inflation The European Central Bank is all but certain to promise an even longer period of stimulus to make good on its commitment to boost inflation but the debate among policymakers is likely to be tense and no new measures will be announced. • Two doses of Pfizer, AstraZeneca shots effective against Delta variant, study finds Two doses of Pfizer or AstraZeneca's COVID-19 vaccine are nearly as effective against the highly transmissible Delta coronavirus variant as they are against the previously dominant Alpha variant, a study published on Wednesday showed. • U.S. state officials urge support for landmark $26 bln opioid settlement A group of state attorneys general unveiled on Wednesday a landmark $26 billion settlement with large drug companies for allegedly fueling the deadly nationwide opioid epidemic, but the deal still requires support from thousands of local governments. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.8% higher at 15,741.00. • The Indian rupee is expected to advance against the U.S. currency, helped by improved risk sentiment and pullback on the dollar index. • Indian federal government bond yields will likely trade largely unchanged in early session, as investors may stay on the sidelines to parse the outcome of the central bank’s debt purchase today. The yield on the benchmark 6.10% bond maturing in 2031 is likely to trade in the 6.10%-6.15% band. GLOBAL MARKETS • Wall Street stocks posted their second straight daily gain on Wednesday, with robust corporate earnings and renewed optimism about the U.S. economic recovery fueling a risk-on rally. • Asian stocks rallied, bonds nursed losses and oil held onto sharp gains as investors seemed to set aside virus jitters for now and looked ahead to the European Central Bank for reassurance that policy support will continue for some time. • The safe-harbour U.S. dollar and yen remained on the back foot, after pulling back from multi-month highs amid a recovery in risk appetite as strong earnings lifted Wall Street stocks. • Yields on U.S. Treasuries rebounded for a second day on Wednesday, with a sale of 20-year government debt on the weak side, as fears of new COVID-19 lockdowns eased and a rally in equity markets suggested renewed optimism about a robust economic recovery. • Oil prices held on to most of their gains from the previous session, as signs of stronger demand helped offset an unexpected rise in U.S. inventories. • Gold inched lower, as the dollar remained strong and investors looked past economic threats from rising cases of the Delta coronavirus variant and opted for riskier assets instead. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 74.63/74.66 July 20 (2,278.56) crores (98.99) crores 10-yr bond yield 6.119% Month-to-date (7,217) crores 304 crores Year-to-date 53,127 crores (21,847) crores (FII investment numbers are in Indian rupees. Source: National Securities Depository Limited) For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories [IN CORPD] Local market closing/intraday levels [IN SNAPSHOT] Monthly inflows [INFLOWS RTRS TABLE IN] ($1 = 74.44 Indian rupees) (Compiled by Haneyl Jacob in Bengaluru)